Fact file: Alabama hurricane insurance

June 2020

Four of the 10 costliest hurricanes in U.S. history have impacted Alabama: Hurricane Michael in 2018, Hurricanes Irma and Harvey in 2017, and Hurricane Katrina in 2005.
There were 54,348 flood insurance policies in Alabama in 2018. Standard homeowners policies typically do not cover flood damage. Flood insurance is covered by the National Flood �鶹�� Program, but private flood insurance is becoming increasingly available.
There were 784,657 people living in coastal areas in Alabama in 2015, up by 2.5 percent from 2010, according to the U.S. Census Bureau.
In Alabama, about 52,000 single-family homes were at risk in 2020 for storm surge damage from hurricanes up to Category 5 strength, according to CoreLogic, Inc. These homes would cost $9.4 billion to completely rebuild, including labor and materials.
The Alabama �鶹�� Underwriting Association (AIUA) was voluntarily formed in the early 1970s by the insurance industry in cooperation with the Alabama Department of �鶹�� as a market of last resort to provide property and windstorm and hail insurance in the coastal areas of Alabama.
The AIUA’s exposure base has expanded rapidly. The exposure to loss—insured value of all properties—was $5.1 billion in fiscal year 2019 up from about $3.3 billion for fiscal year 2010. The AIUA had about 18,000 policies in force in fiscal year 2019 compared with 21,000 policies in 2018.
AIUA policies have a hurricane deductible that applies only in the event of a hurricane. The standard deductible for all other perils is $500.

Top 10 Writers Of Commercial �鶹�� In Alabama By Direct Premiums Written, 2019 (1)

Rank	Group/company	Direct premiums written ($000)	Market share
1	Travelers Companies Inc.	$248,292	6.6%
2	Liberty Mutual	160,252	4.3
3	Chubb	154,583	4.1
4	Auto-Owners �鶹�� Co.	150,333	4.0
5	CNA	145,014	3.9
6	Zurich	137,079	3.6
7	American International Group (AIG)	130,932	3.5
8	Nationwide Mutual Group	118,437	3.2
9	The Cincinnati �鶹�� Cos.	114,654	3.0
10	Progressive	102,638	2.7

(1) Before reinsurance transactions.

Source: NAIC data, sourced from S&P Global Market Intelligence, �鶹�� Information Institute.

Top 10 Writers Of Homeowners �鶹�� In Alabama By Direct Premiums Written, 2019 (1)

Rank	Group/company	Direct premiums written ($000)	Market share
1	State Farm	$496,918	27.2%
2	Alfa Mutual Group	250,507	13.7
3	Allstate Corp.	218,869	12.0
4	USAA �鶹�� Group	161,541	8.8
5	Travelers Companies Inc.	83,955	4.6
6	Farmers �鶹�� Group	79,939	4.4
7	Liberty Mutual	62,671	3.4
8	Auto-Owners �鶹�� Co.	49,501	2.7
9	Nationwide Mutual Group	45,893	2.5
10	COUNTRY Financial	41,043	2.2

(1) Before reinsurance transactions.

Source: NAIC data, sourced from S&P Global Market Intelligence, �鶹�� Information Institute.

Top 10 Writers Of Private Passenger Auto �鶹�� In Alabama By Direct Premiums Written, 2019 (1)

Rank	Group/company	Direct premiums written ($000)	Market share
1	State Farm	$847,370	23.0%
2	Alfa Mutual Group	501,549	13.6
3	Berkshire Hathaway Inc.	414,662	11.2
4	Allstate Corp.	400,960	10.9
5	Progressive	345,091	9.3
6	USAA �鶹�� Group	275,865	7.5
7	National General Holdings Corp.	115,379	3.1
8	Travelers Companies Inc.	82,966	2.2
9	Liberty Mutual	78,023	2.1
10	Farmers �鶹�� Group	78,012	2.1

(1) Before reinsurance transactions.

Source: NAIC data, sourced from S&P Global Market Intelligence, �鶹�� Information Institute.

Top 10 Costliest Hurricanes In The United States, 2024 (1)

			Estimated insured loss
Rank	Year	Hurricane	Dollars when occurred	In 2024 dollars (2)
1	2005	Hurricane Katrina	$65,000	$104,471
2	2022	Hurricane Ian	54,000	57,231
3	2021	Hurricane Ida	36,000	41,540
4	2012	Hurricane Sandy	30,000	40,939
5	2017	Hurricane Harvey	30,000	38,571
6	2017	Hurricane Irma	30,050	38,432
7	2017	Hurricane Maria	29,511	37,743
8	1992	Hurricane Andrew	16,000	35,845
9	2008	Hurricane Ike	18,200	26,259
10	2024	Hurricane Milton	20,000	20,000

(1) Includes Puerto Rico and the U.S. Virgin Islands and losses sustained by private insurers and government-sponsored programs such as the National Flood �鶹�� Program. Subject to change as loss estimates are further developed. As of January 2025.
(2) Adjusted for inflation by Aon using the U.S. Consumer Price Index.

Source: Aon.

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Estimated Value Of Insured Coastal Properties Vulnerable To Hurricanes By State, 2015 (1)

Rank	State	Commercial	Residential	Total Coastal	Total exposure (2)	Coastal as a percent of total
1	New York	$2,093	$1,272	$3,365	$5,571	68%
2	Florida	1,483	1,718	3,200	4,058	79
3	Virginia	92	106	1,993	2,078	10
4	Texas	725	638	1,363	5,358	28
5	Massachusetts	441	511	953	1,765	54
6	New Jersey	373	422	795	2,453	32
7	Connecticut	290	385	675	1,025	64
8	Louisiana	182	147	329	896	38
9	South Carolina	112	126	239	931	26
10	Maine	73	111	184	321	53
11	North Carolina	69	109	178	2,014	8
12	Alabama	63	65	128	1,014	13
13	Georgia	53	56	109	2,171	5
14	Delaware	34	59	93	241	29
15	New Hampshire	32	42	74	328	23
16	Mississippi	36	35	71	527	14
17	Rhode Island	25	46	71	241	22
18	Maryland	8	10	18	1,476	1
	All states above	$6,184	$5,858	$13,838	$32,468	38%
	Total, United States	$6,184	$5,858	$13,838	NA	16%

(1) Includes residential and commercial Gulf and East Coast properties, as of December 31, 2015. Ranked by value of total insured coastal property.
(2) Total exposure is an estimate of the actual total value of all property in the state that is insured or can be insured, including the full replacement value of structures and their contents, additional living expenses and the time value of business interruption coverage.

NA=Data not available.

Source: AIR Worldwide.

Other Resources I.I.I. Facts & Stats: Flood �鶹�� I.I.I. Facts & Stats: Hurricanes I.I.I. Issues Updates: Catastrophes I.I.I. Issues Updates: Hurricane and Windstorm Deductibles

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